Start by cooking the bacon until it's very crispy, then crumble it into small pieces and set aside. While the bacon cooks, thaw the peas if frozen and pat them completely dry with paper towels—this prevents excess moisture from diluting the dressing. Dice the red onion into small pieces and shred the cheddar cheese from a block rather than using pre-shredded, which has anti-caking agents that affect texture. I find that taking time to properly dry the peas makes a huge difference in keeping the salad from becoming watery.
In a medium bowl, whisk together the sour cream and mayonnaise until smooth and combined. Add the sugar, white vinegar, Dijon mustard, salt, and pepper, whisking until the dressing is fully emulsified and well seasoned. Taste as you go—the balance of tangy vinegar and sweet sugar should be harmonious. I prefer using quality brands like Daisy sour cream and Hellmann's mayonnaise because they create a cleaner, more balanced flavor base without any off-tastes.
In a large bowl, combine the peas, diced red onion, crumbled bacon, and shredded cheddar cheese. Pour the dressing from Step 2 over the pea mixture and fold everything together gently until the dressing is evenly distributed and all components are coated. Transfer the salad to a serving bowl and refrigerate for at least 4 hours, or ideally overnight, to allow the flavors to meld together and the salad to chill thoroughly before serving. For a crowd, I actually like to make this salad a day ahead because the flavors deepen and marry beautifully with time.